Processors Toolkit

AMD edges ahead of Intel

Dawn Kawamoto CNET News.com

Published: 08 Nov 2005 18:00 GMT

AMD sold more chips than industry giant Intel in US retail stores in October, according to a report released on Tuesday by market researcher, Current Analysis.

Desktop computers and notebooks with AMD chips accounted for 49.8 percent of PCs sold in domestic stores for the month, compared with Intel's 48.5 percent of the market, according to the report.

"AMD did the unthinkable by surpassing Intel in October. Continuing to hold this lead in the holiday season would be a colossal win for the company," Matt Sargent, Current Analysis research director, said in a statement.

Last month, AMD's slice of the US retail store pie reached 67.7 percent for desktops, up from 52 percent in September. Its share of the notebook market in that category also rose — to 31.5 percent in October from 26.2 percent in September.

Although AMD's overall share of the US retail store market surpassed Intel based on units sold, it failed to generate more revenue than the industry giant. Intel chips, which have a higher average selling price, accounted for 57.6 percent of the US retail market in October based on revenue, while AMD lagged at 40.1 percent.

Intel also is still the market leader when factoring in overall PC sales in the US, including machines purchased through direct sellers. That top position is bolstered by Intel's exclusive relationship with direct seller Dell, a top supplier of PCs.

Nonetheless, the lead in retail space will help advance AMD toward its long-term goal of 30 percent market share worldwide. AMD currently has approximately 17 percent market share.

Intel's retail slip comes as it copes with other headaches, involving antitrust agencies in foreign countries.

Intel agreed in March to recommendations issued by the Fair Trade Commission in Japan, which called on Intel to halt the practice of requiring PC makers to limit the use of competitors' chips in order to receive monetary rebates.

In June, the Korea Fair Trade Commission requested documents relating to the marketing and rebate programmes of an Intel foreign subsidiary, while in July, the European Commission raided Intel offices as part of an antitrust investigation.